Owner of chameleon carrier incarcerated for his role in scheme

A reincarnated carrier scheme results in jail time for the former owner of the trucking companies involved in the case.

For his role, the owner was sentenced in federal court to 10 months’ imprisonment and 36 months’ supervised release, and ordered to pay a $3,000 fine. The judge also signed a $34,959 Forfeiture Order.

The defendant had been charged previously with the use of a facility in interstate commerce to promote an unlawful activity. He admitted to knowingly and intentionally using a reincarnated carrier’s name when submitting registration documents to the Federal Motor Carrier Safety Administration (FMCSA).

Background

In December 2014, FMCSA had issued an unsatisfactory safety rating to the original registration, ordering the company to cease all transportation in interstate and intrastate commerce. The defendant, with the assistance of others, created a new carrier name. By March 2015, FMCSA issued an Operations Out-of-Service Order and a Record Consolidation Order to both carriers. The carriers were ordered by FMCSA to cease all motor carrier operations.

The investigation revealed that the former owner continued to dispatch trucks and drivers from the original motor carrier. He also used its bank account to receive proceeds of its operations and pay its expenses, using other motor carriers to conceal its operations. He maintained related records and conducted the business of the trucking company at its offices in Bensalem, Pennsylvania.